Pakisan Cotton market: prices steadier on quality factor

Firmness prevailed on the cotton market on Tuesday as mills and expoters both preferred to make deals of fine quality at their psychological levels, dealers said. The official spot rate maintained an upward march, picked up more Rs 50 to Rs 6550, they said. Price of seed cotton in Sindh per 40 kg were unchanged at Rs 2100-3000, in Punjab rates followed same pattern at Rs 2900-3200, dealers said.

In the ready session, about 18,000 bales of cotton changed hands between Rs 6300-6800, they said. Market sources said that trading activity improved slightly as the mills and exporters showed interest in purchasing of fine type to cover the forward buying ahead of Ashura holidays.

In the meantime, it is likely that local traders may try to lay hands over the Indian cotton, if prices match with their psychological levels, cotton analyst, Naseem Usman said. According to the Reuters, the ICE cotton eased on Monday in heavy, spread-related dealings as trade selling weighed and worries lingered over excess global inventories forecast to record this year as high prices have crimped demand.

The benchmark March cotton contract on ICE Futures US edged down 0.44 cent, or 0.6 percent, to settle at 78.20 cents a lb. The spot December contract edged up 0.09 cent, or 0.1 percent, to finish at 76.97 cents per lb. Fiber underperformed broader commodities markets, with the Thomson Reuters/Core Commodity CRB index ending higher for a third straight session. Trading volumes were heavy, dominated by heavy rolling out of the spot contract and commercial selling activity in March, now the most-active contract.